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The Moderating Role of Green Energy and Energy-Innovation in Environmental Kuznets: Insights from Quantile-Quantile Analysis

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  • Hammed Oluwaseyi Musibau
  • Rabindra Nepal
  • Joaquin L. Vespignani
  • Maria Yanotti

Abstract

The recent environmental challenges in Africa that emanated from global warming, human activity, limited access to electricity and overexploitation of natural resources have contributed to the growth of carbon dioxide (CO2) emissions in the region. This paper empirically investigates the moderating role of green energy consumption and energy innovation in the environmental Kuznets curve for the Sub-Saharan African (SSA) region using data spanning from 1980 to 2018. Our threshold model found that at least 54 percent of the population needs access to energy innovation before the region could be safe from environmental degradation. We conclude that investment in green energy, energy innovation and conservation of natural resources will help to mitigate environmental degradation in SSA in the long run. Policies should be targeted towards encouraging the consumption of green energy, and more investment in energy innovation beyond the estimated threshold will save the region from pollution and its implications.

Suggested Citation

  • Hammed Oluwaseyi Musibau & Rabindra Nepal & Joaquin L. Vespignani & Maria Yanotti, 2020. "The Moderating Role of Green Energy and Energy-Innovation in Environmental Kuznets: Insights from Quantile-Quantile Analysis," Globalization Institute Working Papers 385, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddgw:88092
    DOI: 10.24149/gwp385
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    References listed on IDEAS

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    1. Abid Rashid Gill & Kuperan K. Viswanathan & Sallahuddin Hassan, 2018. "A test of environmental Kuznets curve (EKC) for carbon emission and potential of renewable energy to reduce green house gases (GHG) in Malaysia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(3), pages 1103-1114, June.
    2. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    3. George Halkos & Argyro Zisiadou, 2018. "Relating environmental performance with socioeconomic and cultural factors," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 69-88, January.
    4. Ogundipe, Adeyemi & Alege, Philip & Ogundipe, Oluwatomisin, 2014. "Income Heterogeneity and Environmental Kuznets Curve in Africa," MPRA Paper 55822, University Library of Munich, Germany.
    5. Monyei, Chukwuka G. & Adewumi, Aderemi O. & Obolo, Michael O. & Sajou, Barka, 2018. "Nigeria's energy poverty: Insights and implications for smart policies and framework towards a smart Nigeria electricity network," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1582-1601.
    6. Inglesi-Lotz, Roula & Dogan, Eyup, 2018. "The role of renewable versus non-renewable energy to the level of CO2 emissions a panel analysis of sub- Saharan Africa’s Βig 10 electricity generators," Renewable Energy, Elsevier, vol. 123(C), pages 36-43.
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    Cited by:

    1. Ni, Xiewen, 2023. "Natural resources and COP26 targets of developed countries: Pandemic perspective of natural resources extraction," Resources Policy, Elsevier, vol. 83(C).

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    More about this item

    Keywords

    Environmental Kuznets Curve; Green energy; Energy innovation; CO2 emission; SSA countries; Quantile-Quantile regression;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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